00:01
Obtain the most current reports i .e.
00:04
10k reports for facebook, amazon, apple, netflix and google.
00:10
Then locate the sections in each 10k report that provide information on gross profit and ending inventory.
00:23
Compare the gross profit figures for each company.
00:38
Gross profit is calculated by subtracting the cost of goods sold from the total revenue.
00:43
It represents the amount of money a company has left after detecting the direct cost associated with producing its goods or services.
00:52
A higher gross profit indicates that the company is generating more revenue relative to its production cost.
00:59
Then compare the ending inventory figures for each company.
01:18
Ending inventory represents the value of goods or products that a company has on hold at the end of reporting period.
01:24
It includes both finished goods ready for sale and raw materials or work in progress.
01:30
A higher ending inventory may indicate that the company is either experiencing slower sales or has overstocked its inventory...